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Irina18 [472]
3 years ago
7

Which of the following comes closest to the value at the end of year 6 of investing $600 today (year 0) and then investing anoth

er $600 at the end of year 5 if the interest rate is 3%?
a. $ 1,434
b. $ 1,334
c. $ 1,542
d. $ 1,383
e. $ 1,487
Business
1 answer:
cestrela7 [59]3 years ago
5 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Investment= $600 today and $600 at the end of year 5

Interest rate= 3%

To calculate the final value, we need to apply the following formula on each investment:

FV= PV*(1+i)^n

FV= 600*(1.03^6)= $716.43

FV= 600*(1.03^1)= $618

Total FV= $1,334.43

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Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentag
Iteru [2.4K]

Answer:

Computer Tycoon, Inc.

1. Horizontal Analysis, calculating the year-over-year changes in each line:

Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    

                                                      2016         2015            Dollars      %

Sales Revenue                             $108,000  $132,000  -$24,000  -18.2%

Cost of Goods Sold                         64,000      74,700   -$10,700  -14.3%

Gross Profit                                      44,000     57,300   -$13,300  -23.2%

Selling, General, & Administrative

                         Expenses               36,800     38,600   -$1,800      -4.7%

Interest Expense                                  580           515     $65         +12.6%

Income before Income Tax Exp.      6,620       18,185  -$11,565     -63.6%

Income Tax Expense                         1,500       5,800   -$4,300     -74.1%

Net Income                                      $5,120    $12,385   -$7,265    -58.7%

2-A. Vertical analysis by expressing each line as a percentage of total revenues:

Computer Tycoon, Inc. Income Statements  For the Year Ended December 31    

                                                      2016            %             2015             %

Sales Revenue                             $108,000     100        $132,000    100

Cost of Goods Sold                         64,000      59             74,700     56.6

Gross Profit                                      44,000       41             57,300     43.4

Selling, General, & Administrative

                         Expenses               36,800       34           38,600       29.2

Interest Expense                                  580       0.5                515      0.4

Income before Income Tax Exp.      6,620        6              18,185      13.8

Income Tax Expense                         1,500       1.4             5,800       4.4

Net Income                                      $5,120       4.7         $12,385      9.4

2-B No. It made less profit per dollar of sales in 2016 compared to 2015.

Explanation:

a) Horizontal analysis is the analysis of financial statements to show changes in the amounts of corresponding financial statement items over a period of time.  It is used to evaluate the trend situations, using financial statements for two or more periods.

b) Vertical analysis is another technique for analyzing financial statements with each line item being listed as a percentage of a base figure within the statement.  For income statement, the base figure is usually the Sales Revenue, while for balance sheet, the base figure is the total assets.

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Which type of insurance covers preventive care and medical treatment?
dezoksy [38]
Health insurance is the answer
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Whispering enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Whispering will receive a pa
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Answer:

Transaction price of the arrangement for Blair Biotech is $10,000,000.

2) Journal Entries for Blair.

Date Accounts Debit$ Credit$

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Explanation:

8 0
3 years ago
1. Peter's Audio Shop has a before-tax cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The fir
tia_tia [17]

Answer:

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Explanation:

The computation of the weighted average cost of capital is shown below:-

Debt = $500,000 × 1.02

= $0.51 m

Preferred = 40,000 × $34

= $1.36 m

Common = 104,000 × $20

= $2.08 m

Total = $0.51 m + $1.36 m + $2.08 m

= $3.95 m

So, Weighted average cost of capital = ($2.08 ÷ $3.95 m × 0.11) + ($1.36 m ÷ $3.95 m × 0.08) + (($0.51 m ÷ 3.95 m × 0.07 × (1 - 0.34))

= 0.057924 + 0.027544 + 0.005965

= 0.091433

or 9.14%

Therefore for computing the weighted average cost of capital we simply applied the above equation.

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A(n) ______ allows the free movement of factors of productions among member countries, eliminates trade barriers among member co
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Answer:

common market

Explanation:

5 0
2 years ago
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